The informal sector in South Africa plays a significant role in urban African economies, providing livelihoods for millions of people who are excluded from formal employment. No empirical data was collected; instead, a literature review synthesizes existing research on psychology and the informal economy in South Africa. While the literature suggests that informal workers rely heavily on community support for coping, there is a gap in understanding how these dynamics impact mental health outcomes. Further qualitative studies should explore the specific psychological impacts and interventions available within the informal sector to address worker well-being.